Advertising and media giant WPP is on a hot streak and there�s no sign it will slow down any time soon.
Chief Executive Martin Sorrell remains cautious, but the London-listed company (WPPGY) put in a robust performance in 2012 in a challenging environment that is likely to extend through 2013.
�The fourth quarter (of 2012) was a little better than we anticipated,� says Sorrell on the sidelines of the World Economic Forum in Davos, Switzerland.
�I think we reached our targets last year � but we got there ugly,� he adds. �We didn�t manage the business in the way we did in 2011.
�I think 2013 will be a difficult; it will be tough, it will be scrappy.�
The company is due to report preliminary earnings for 2012 in March, according to its website.
WPP is growing steadily due to its exposure to digital channels and its global reach, which includes market-leading positions in China and India.
The stock was tipped in Barron�s last month to perform well in 2013. It has added almost 9% in value since then, closing Tuesday at 9.66 British pounds ($15.33). At 12.4 times estimated 2013 earnings of 78 pence per share, it is still a long way from its historical average of 15 to 16 times.
As we said last month, the advertising industry traditionally has grown through acquisitions, but consolidation looks to be slowing, potentially freeing up more cash for dividends and share buybacks. WPP, which offers a dividend yield of 2.7%, can continue to do well for investors in 2013. We�re just advertising that.
No comments:
Post a Comment